Followings are six of the most common mistakes made by people while filing income tax returns:
1. Don’t fill the wrong ITR form
One of the most common mistakes is the taxpayer filing the wrong Income Tax return form. Check your Income eligibility criteria carefully before selecting Income Tax Return form.
2. Not reporting all income sources
If you do not report all your income sources, the Income Tax department is likely to treat it as a violation of the Income Tax Act and send you a notice.
Most individuals have a number of income sources apart from salaries, such as interest earned on bank savings account, fixed deposits (FDs), insurance and other savings schemes like PPF. You need to report all such income, even if it is tax-free.
3. Not declaring your real estate properties
Tax is not just payable for the house that you occupy, but for all the houses/properties you own.
If you own more than one house, you are liable to pay a certain amount as tax, even if you have not earned any income from it or if it is unoccupied.
4. Mistakes in claiming deductions under section 80C
Many of us think that employer’s contribution to the Employee Provident Fund (EPF) has to be included in claiming Section 80C benefits.
Many other deductions are claimed under wrong heads leading to their rejection. So please cross-check before filling your form.
5. Discrepancy in TDS details
Many of us file returns without verifying Form-26 AS credit of TDS (tax deducted at source) held with I-T Department. If your employer or anyone else who has deducted TDS does not deposit the same with the I-T Department or fails to mention your PAN correctly, that amount will not reflect in Form-26 AS, leading to default.
To download your Form-26AS, you can login to your account on the e-filing website, www.incometaxindiaefiling.gov.in. Once logged in, click on ‘View 26AS (Tax Credit)’ under the ‘My Account’ tab. The website will redirect you to the TRACES website to download the form.
6. Not providing correct personal details
Many people face issues with income tax returns filing due to wrong postal address and email address. Since most of the communication with the tax department happens through post or email, it is absolutely important to provide accurate details. Otherwise you could end up missing important notifications.